inaugural crop year 2016 highlights from 2017 · why hemp? i’m entrepreneurial and i like a...

Inaugural Crop Year 2016

&

Highlights From 2017

About Us - Prior to Hemp…

Strohfus Stock Farm, LLC (www.strohfusstockfarm.com)

Our location is just southeast of St. Paul/Minneapolis in Hastings MN, close to Afton, Cottage Grove and Woodbury. We overlook the beautiful St. Croix River Valley!

45+ Years of Horse Boarding Experience

Hay & Forage Production

Custom Hay Harvesting

Small Beef Operation

Rented Acres for Corn and Soybeans

“Retired” from IT Corporate America in 2017

©2017 Minnesota Hemp Farms, Inc 2

About Us – Since Hemp…

Life got a little more exciting and fast!

Application Submitted March 2016

New Company Formed September 2016

Minnesota Hemp Farms, Inc (www.mnhempfarms.com)

New Brand “Field Theory” created October 2016

First Product “Hemp Hearts” January 2017

In Approx 60 Retail Locations + Online

More products coming…©2017 Minnesota Hemp Farms, Inc 3

http://www.mnhempfarms.com/

Why Hemp?

I’m Entrepreneurial and I like a challenge…Hemp is definitely that.

Relatively speaking, this is a “ground floor” opportunity. Those that get going now have an advantage in both growing practices and marketing opportunities.

Canada who has been growing since 1998 has an ~3% Market Penetration. The United States (which is the largest importer of hemp products) has a Market Penetration of ~1%. (Source: www.canadiangrocer.com December 17,2015) That’s a lot of upside market potential!

“Hemp seed sales in the American natural, specialty gourmet and conventional market rose 20% for the 52 weeks to July 7 2015, according to SPINS. Manitoba Harvest represents 53% of total hemp seed sales.” (Source: www.canadiangrocer.com December 17,2015)

“SPINS data also shows that hemp seed as a primary ingredient in food is up 12% in sales in the U.S.” (Source: www.canadiangrocer.com December 17,2015)


http://www.canadiangrocer.com/



Why Hemp?


Why Hemp?


Source: http://www.hemp-technologies.com/page83/files/farming-hemp.jpg

2016 Crop Expenses –

Fertilizer Application Costs

FIELD #1

Pellet Lime 200#

AMS 150# (31 N)

UREA 110# (50 N)

FIELD #2

Pellet Lime 150#

AMS 171# (36 N)

UREA 111# (51 N)


General Prescription/Crop Type = “Spring Wheat”

2016 Fertilizer Rates:

(River Country Co-op Hastings, MN)

AMS $350/ton

UREA $340/ton

Pellet Lime $173/ton

Avg N Units per Acre = 84 N

Total Fert Costs = $1,330 (applied)

Cost Per Acre Avg = $73.93

2017 Crop Expenses – Seed


Seed Costs in 2017 were $4/lb FOB Hastings, MN

Seeding Rate 25-30 lb/acre ($120/acre)

CERTIFIED VARIETIES (Genetics are very important!)

Hemp Genetics International – http://www.hempgeneticsinternational.com/

CRS-1 - Tallest

CFX-2 – Medium Stature

Katani - Shortest

Finola - http://finola.fi/

***5 Acres

http://www.hempgeneticsinternational.com/

Revenue Opportunities – Expectation

Setting Every call I take within the first 5 min the caller asks “what I really want to know

is how much money can I make growing Hemp?

The answer is always the typical Consultant’s Answer… “It depends”. You all know input costs vary and you saw those on the last slide. But let’s try to answer as best we can with some data…

Yields - If you have good ground and good yields on other crops…“normal” growing conditions you should yield 1,000 – 1200#. If you typically have high yielding ground and things go great you could achieve higher. Most of the Canadians set expectations at 800# dryland yields for rookie hemp growers.

Prices – Raw Grain (Conventional) – All over the board for niche…stable for global!

Canada raw grain (clean and dry!) = $.80 CAD per lb / $.61 USD per lb.

Other U.S. Pilot States 2016 (clean and dry!) = $.50 USD per lb - $.65 USD per lb.

Minnesota Hemp Farms, Inc – 2017 Grain Contracts : $.50 USD Conventional (clean and dry!) / $1.10 USD Organic (clean and dry!)

Net Operating Profit $300-$500/acre is achievable! (**1200# yield)


Revenue Opportunities – Expectation

Setting (Cont)

Prices Processed (volume has HUGE impact!)

Hulled Hemp Seeds Wholesale (conventional) $3.25 USD - $6.40 USD

Hulled Hemp Seeds Wholesale (organic) $5.25 USD - $10.85 USD

Hulled Hemp Seeds RETAIL PACKAGED (organic) $12/lb USD - $14/lb USD

Cold Pressed Oil Wholesale (Conventional) $3.85/L USD - $8.50/L USD

Cold Pressed Oil Wholesale (Organic) $6.42/L USD - $14.50/L USD

Cold Pressed Oil RETAIL PACKAGED (Organic) $20/L USD - $30/L USD


The Fun Stuff! – Planting.Planting was LATE (June 17, 2016). The first in the State of Minnesota since approximately 1950

PRO TIP: 7.5” Row Spacing at ½ - ¾ inch depth. Plant down to moisture at a rate of 25# per acre up to 30# per acre if Organic or

higher than average weed pressure.

Landoll Grain Drill – Courtesy Value Implement – Ellsworth, WI


The Fun Stuff! - PlantingPRO TIP: 7.5” Row Spacing at ½ - ¾ inch depth. Plant down to moisture at a rate of 25# per acre up to 30# per acre if Organic or higher than average weed pressure.

Land Pride Grain Drill – Courtesy Niebur Implement – Miesville, MN


The Fun Stuff! - Growing

Good emergence just 4.5 days

after planting!

2” root to crown just 4.5 days after

planting!



12 Days!


22 Days!


41 Days! (July 30, 2016)


56 Days! (August 14, 2016)

The Fun Stuff! - Growing 56 Days. August 14, 2016

Stalks – Some thick, some thin.


56 Days. August 14, 2016

Variance in grain heads.

The Fun Stuff! – Growing…30 Days Until Harvest!August 30, 2016 – 73 Days since planting


The Fun Stuff! – Growing…20 Days Until Harvest!August 30, 2016 – 83 Days since planting


The Fun Stuff! – HARVEST TIME!

September 30, 2016 – 103 Days since planting.


The Fun Stuff! – HARVEST FIELD CLEANING GRAINPRO TIP: Field Cleaning will help your dry down immensely.

September 30, 2016 – 103 Days since planting. ©2017 Minnesota Hemp Farms, Inc 20

2017 – 2nd Year Differences

Seed Procurement Much Easier – Seed Dealers. May 17th Seed Arrived vs. June 16th in 2016. Earlier Plantings Possible (good news / bad news)

1205 acres planted 2017 vs. 30 in 2016

MN Hemp Farms facilitated the planting seed for ~800 acres of the 1205 planted.

Ability to move seed out of the state for contracting. **Some risk still exists for the grower. Local processing is still a need but state and global export is now possible.

Contracts being offered. Conventional and Organic (some only offering organic contracts). Contracts very important for overall market stability!

More experimentation/innovation with this year’s pilot group but also more traditional farms just looking for another rotational crop.

Planting: Hemp is a “hungry crop”. 200 Units N, 40 P!

Processing will be here “soon”…but we have a logistics plan that works now.


Processing…

SERVICES/PRODUCTS

Dehulling (Hemp Hearts)

Oil Pressing (Cold Pressed Hemp Oil)

Milling (Hemp Flour and Protein Powders)

Packaging: Oil and Bulk Hearts

Retail Packaging: Co-packing dry goods for retail, also private label options

for other brands.

FIBER: None at this time. Leveraging partnership with speculative market

leader. Fiber is a viable market (textiles, oil and gas drilling, graphene

replacement in semi-conductors)…

LOCATION

Olivia MN (**planned site, other locations still under review).


Processing…

Why Olivia?

Existing Warehouse Capacity available with expansion capabilities.

Good proximity to estimated higher density grow areas (southern/western

MN). Easy access from all other parts of the state. We do expect significant

growing to occur in the northwestern part of the state (Red River Valley etc).

Well positioned to draw Wisconsin (legislation to be signed November 2017),

South Dakota (when approved), Iowa (when approved).


Market 2016


Market Outlook

SPECULATION: North Dakota and Minnesota will eventually produce the

most hemp. Wisconsin and Iowa eventually will be close… Colorado and

Kentucky have a jump start.

Higher US Consumption in 2017.

Higher Canadian Production will create pricing pressure for 2017 and

2018 (holdover grain) due to estimated overproduction.

Global Markets – Pressure from China and other lower cost production

areas.


The Fun Stuff! – PLANTING


The Fun Stuff! – Harvesting


The NOT so fun stuff! – Grain Cleaning and Drying


The NOT so fun stuff! – Final Grain Cleaning Before Storage


Recent News Coverage

http://www.kare11.com/news/emerging-hemp-industry-brings-new-products-to-minnesota/482411612


HOW TO CONTACT US:

John Strohfus

612.384.5023

[email protected]

mnhempfarms.com

fieldtheoryhemp.com

Facebook: www.facebook.com/mnhempfarms

mailto:[email protected]

http://www.mnhempfarms.com/

http://www.fieldtheoryhemp.com/

inaugural crop year 2016 highlights from 2017 · why hemp? i’m entrepreneurial and i like a...

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